Firm A operates in perfect competition, and the price the firm faces is greater than its average variable cost and less than its average total costs. If the firm does not expect price to change, firm A should: O a. Shut down in the short run but operate in long run O b. Shut down in short run and in long run Oc. O d. Shut down immediately Operate in short run but shut down in long run 4
Firm A operates in perfect competition, and the price the firm faces is greater than its average variable cost and less than its average total costs. If the firm does not expect price to change, firm A should: O a. Shut down in the short run but operate in long run O b. Shut down in short run and in long run Oc. O d. Shut down immediately Operate in short run but shut down in long run 4
Chapter9: Perfect Competition
Section: Chapter Questions
Problem 13QP
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